Poor countries to block rich nations’ attempts

Developing countries, including the Philippines, have banded together to block attempts by developed countries to redefine what agricultural-based economies can include in their list of sensitive products that may be given tariff protection.

Negotiators are trying to hammer out modalities for agriculture and non-agricultural market access (NAMA) which they hope to sign by end-April but the way the talks are shaping up, rich countries like the United States, Australia and New Zealand want to take back from developing countries the flexibility to "self-designate" special products (SPs).

Jessica Reyes-Cantos, lead convenor of the non-government organization Rice Watch and Action Network (R1) which tracks the progress of the WTO talks, said the US in particular has been using G-33 negotiators from Malaysia to echo its proposal to define a clear criteria for self-designation of SP.

During the WTO ministerial conference in Hong Kong last December, developed countries relented to poor countries insistence to be given the flexibility to appoint an appropriate number of tariff lines as special products (SP) as well as impose special safeguard mechanisms (SSMs) based on import volumes and price triggers. It was also agreed that at least 20 percent of tariff lines will be treated as SPs.

US negotiators are also claiming that the US Congress will not accept the developing countries’ push for SP and instead, is insisting that SPs be limited to products being produced by subsistence farmers.

Cantos said this backtracking will be detrimental to developing countries.

"The Philippines for instance, already has tariff rates that are very low compared to developed countries and even some developing countries. We have no other recourse but to maximize flexibilities that we got in the Hong Kong ministerial declaration," she said.

Out of a total of 802 tariff lines under agricultural products, 259 tariff lines are within 0-30 percent range while 543 tariff lines fall under the 30-60 percent range.

In contrast, ongoing simulations among developing countries show that Malaysia has tariffs of up to 140,000 percent and Egypt has 3,000 percent maximum bound rate.

"The developed countries as expected are trying to push for limits in applying special products, but this is revisionist and we will definitely not agree to that," said Agriculture Undersecretary Segfredo Serrano.

The G-33 objected to the counter-offer of the developed world to limit the SP and special safeguard mechanisms on products that are critical to food security.

The G-33 ministers also pointed out that developing countries should be exempted from commitments to reduce de minimis support, either on a stand-alone basis or as part of reduction of overall trade-distorting support. De-minimis refers to the percentage of the gross value added in agriculture that is provided by governments to support their farm sector.

At the same time, G-33 reaffirmed that the structure of the tiered formula for tariff reductions must have the proper special differential treatment elements through among others, higher thresholds and adequate proportionality in the level of reduction commitments.